Q3 2021 Liberty Latin America Ltd Earnings Call
Good morning, ladies and gentlemen, and thank you for standing by.
Today's call is being recorded.
I'll now turn the call over to be not corrupt interim Chief Technology Officer of Liberty Latin America.
Good morning, and welcome to Liberty, Latin America's third quarter, 'twenty, 'twenty, one investor call.
At this time, all participants are in listen only mode.
Today's formal presentation materials can be found under the Investor section of Liberty Latin America's website at.
W. W. W elevate our call.
Following today's formal presentation instructions will be given for a question and answer session.
As a reminder, this call is being recorded and will be available under the investors section of our website.
Today's remarks may include forward looking statements, including the company's expectations with respect to its outlook.
Future cool Opex and other information and statements that are not historical facts.
Actual results may differ materially from those expressed or implied by these statements.
For more information please refer to the risk factors discussed Liberty Latin America's Most recently filed annual report on Form 10-K, and our most recent form 8-K filed with the SEC along with the associated press release.
Latin America <unk>.
James any obligation to update any forward looking statements all information to reflect any change in its expectations or in the conditions on which such statements or information as pace.
In addition on this call it will refer to certain non-GAAP financial measures, which are reconciled to the most comparable GAAP financial measures, which can be found in the appendices to this presentation, which is accessible under the investor section of our website.
I would now like to turn this call over to our CEO, Mr. Blah Blah blah.
Thank you Ben and welcome everybody to Liberty Latin America's results presentation for the third quarter 2021.
I'll begin with our group highlights and operating results before handing over to Chris Noyes our CFO.
We will provide a review of the company's financial performance.
After that we will get straight to your questions.
As always I'm joined by my executive team from across the region and I'll get them involved as needed during Q&A holding our prepared remarks.
As a point of housekeeping, we will both be working from slides, which you can find on our website at www Dot LLE dot com.
Yeah.
Starting on slide four and our highlights.
Highlights.
<unk> delivered 84000 fixed argue your ads in Q3.
Representing our strongest quarter of the years so Paul.
This continued our momentum from the first half and we've now added nearly a quarter of a million Archie used year to date.
C N W, Panama and CFW Caribbean that Netflix drove the majority of conditions.
In mobile we had another strong quarter, adding 74000 new subscribers.
Half of which were postpaid.
You also saw good initial contributions from our mobile operations in Costa Rica, which we acquired from Telefonica on August nine.
As we've previously highlighted newbuild and upgrade plants, a core element of our growth strategy.
We continue to build aggressively in the third quarter, taking our year to date <unk> added or upgraded to approximately 600000.
About 99% of ads have been true fiber to the home technology.
Free cash flow is a key focus and we delivered a strong performance in the quarter with year to date adjusted free cash flow now at $149 million at the end of September.
We are clearly on track to exceed our guidance of 200 million this year.
This will cover this toward the in his section.
Finally, we have made some important inorganic announcements with the acquisition of America Mobile, Alabama operations, and a 50 50 joint venture with American mobile in Chile.
Both of which are expected to close next year.
These transactions will enable listing rules on networks and customer proposition.
Including delivering converged solutions in Chile, while it's also generating significant synergies.
And value for our stakeholders.
Turning to slide five and a fixed consumer business under.
On the left of the slide.
Is that a quarterly argue adds since Q1 2022.
This shows the initial impacts of COVID-19, and a recovery since then with consistent additions truth. This year, culminating Q3's strong performance.
In terms of our markets.
C N W. Panama with the main driver for the group's third quarter results, adding 30000, Oh geez.
Just more than Panama had contributed in the entire first half of communicating what we have invested in our networks and products in Panama and are pleased to see operating results coming true.
C N W. Caribbean and Netflix also delivered another strong quarter with 25000 net adds led by Jamaica, just now at a 100000 RG use over the last 12 months.
Puerto Rico, and Costa Rica continued to grow just subscriber basis in Q3 led by broadband to use which contributed over two thirds of that combined total ads.
Chile remains intensely competitive however, we reported another quarter of stable subscriber numbers and excited about the potential joint venture with America mobile, which I will cover later in the presentation.
On the right on this slide we have shown a newbuild and upgrade progress over the same period.
We remain committed to investing in our Netflix and product offerings to deliver greater access to high speed connectivity solutions for our customers and if all of any built or upgraded 50% more homes in the plus three quotes up 2021.
We did true all of cleaning Duane.
Importantly, nearly all of our bills is no fiber to the home.
We continue to plan.
On deploying this technology.
The rest of our buildings.
Moving to slide six and our mobile performance.
Again, we have presented quarterly evolution, so at the beginning of 'twenty three.
A part of the Slide chart shows the significant impact of mobility restrictions at our operations in the first half with screening 'twenty and a subsequent recovery.
Q3, we included for the first time, the mobile operations, which we acquired from Telefonica in Costa Rica.
The early phases of integrating our businesses in Costa Rica and are pleased with what we have seen to date from what is now our largest mobile operations in terms of subscribers.
In the period during the quarter under our ownership Costa Rica contributed 37000 mobile subscribers.
All other markets C N W Caribbean, and Netflix and C N W. Panama, where again the largest contributor to the group's results delivering 24000 net adds each.
In the aggregate.
We added 74000 mobile subscribers in the quarter with a blended are cool $13 across our base.
On the bottom of the slide.
At present, our postpaid adds over the same period.
We have been successful in building momentum in postpaid through targeted promotions, including a Nissan converged offerings.
Of course study kind of puts or equal our largest postpaid markets.
He led the group in Q3 with 15040 thousand ads respectively.
C N W Caribbean and Netflix and she ended up new Panama have also been steadily growing gift postpaid basis.
16000 postpaid subscribers in aggregate during the quarter.
Next to slide seven.
<unk> operations.
In the bar charts, we breakout the performance or C N W Caribbean, and Netflix and that'd be Panama and Liberty, Puerto Rico over the past two years.
These segments include the majority of our BTB operations, representing over 95% of total revenue in the third quarter.
On the far left we show a C N W. Caribbean in Netflix revenue with the subsea components split out.
The subsea business has been consistent throughout the period slightly high in the latest quarter.
This speaks to its resilience, which is further reinforced by its U S dollar reading.
The non subsea BTB operations in C N W Caribbean and Netflix.
<unk> more severely by COVID-19, but steadily recovering lost year lows.
Next to see end up new Panama, all must mobile incentive.
And I'm always one of our most severely impacted markets in 'twenty between and.
Early 2020 one.
But the segment itself back to pre Covid revenue levels, and we are looking for flip the progression from here.
Finally to Liberty, Puerto Rico.
This chart shows the scale of PCB operations, we acquired in the AT&T transaction.
Q3, 2020 one figure includes b to B operations be quite net to the B to B S N dispose.
Without converged propositions, we believe this can be a growth driver corporate vertical.
On the right up the slide we have broken out our <unk> customer segments.
Bided, an indication of their respective sizes.
Final slide eight and a review of all of the inorganic progress with me.
Before going through some of the details.
I wanted to share how excited we are about these transactions.
We've always said that.
Best M&A in country transactions, but it's all fall product gaps or existing offerings.
The generation of synergies.
<unk> killed the strength in our market positioning and propositions and most importantly, our ability to drive meaningful free cash flow growth.
Moving to a bit more detail on the <unk>.
Less off the slide we've outlined the rationale Paul announced 50 50 joint venture with American mobile in Chile.
Through this transaction, we will combine the strong fixed operator with a strong mobile operator.
This new company will have scale to provide all communications needs to both consumers and businesses.
We plan on investing in more fiber to the whole increased five G coverage strengthen our BTB propositions increase our digital channels and possibly partnering with other operators on our networks.
The combined business plan to generate significant synergies.
Over $180 million.
We feel that this transaction makes sense for Chile.
Combined company, but only be the third largest provider behind NPL telefonica.
Flee a catalyst for more consolidation in that market.
We expect the transaction will close in the second half of 2022 and if also noted some key elements of the structure on the slope.
Turning to the right of the slide we also announced the acquisition of American Mobiles, Panama operations.
This transaction will consolidate the market or to treat place. This.
This will create a healthy situation all treat me please.
It will also bring scale to seed a P. P of both consumer and BBB propositions and distribution.
It improves network coverage and customer experience.
And that's the Chile transaction, we expect to generate significant synergies.
Note that this acquisition will be funded at the asset level in Panama.
In addition to Dis announced transactions, we were pleased to complete the acquisition of Telefonica Costa Rica operations in August.
Integrating this mobile business with a fixed operations that will enable us to create compelling product offerings for our customers as well as try synergy benefits.
We are also making progress in the integration of our Puerto Rico operations.
We are one year into a three year plan.
Recently completed.
Milestone as we rebranded pick them mobile operation to Liberty.
Overall SB approach to yeah, we are focused on delivering our guidance targets and establishing a platform for sustained organic growth across our operations.
We are also working diligently to integrate operations via the quiet as well is to close the transactions announced.
We remain confident that together these actions will create additional value and position us to deliver adjusted free cash flow growth in the coming years.
With that.
As you over to Chris Noyes, our Chief Financial Officer, who will talk you through our financial performance.
Before we take your questions Chris.
Chris.
Thanks balance one housekeeping item to start we closed the Telefonica Costa Rica acquisition on August nine so their results are only in for a portion of this quarter.
Reported revenue increased by 34% or about $300 million to reach revenue of $1.19 billion. In Q3 helped in large part by the positive impact from acquisitions on a rebased basis. Our revenue grew 3% led by strong year over year performances in Costa Rica and Panama.
I'm a product perspective, our residential mobile business picked up steam.
Liver rebased growth of 6% in the quarter, while residential fixed and B to B also grew on.
On a year to date basis, Rebased revenue maintained a consistent 4% growth rate.
Turning to the adjusted OIBDA posted $446 million in Q3, reflecting reported growth of 24% and flat rebased growth consistent with our Q2 statement regarding lower expected rebase rates in the second half of the year.
Cost increases varied across certain markets, but in aggregate, we experienced a combination of higher direct costs, including programming and Rami and higher operating costs similar to revenue our year to date adjusted EBITA Rebased growth was 4%.
Slide 11 summarizes our revenue and adjusted OIBDA performance by operating segment for Q3, and the bottom of the slide displays year over year adjusted OIBDA results, beginning with C. N W. Caribbean and networks, we recorded $435 million of revenue or 4% Rebased growth led by double digit.
Revenue growth in Jamaica mobile.
Mobile revenue performance was the largest contributor to our top line progression with rebased growth of 9%, reflecting modest recovery from Covid and early success from our focus on converged offerings. Additionally, we experienced year over year Rebased revenue growth of 3% in both <unk> and fixed residential adjusted.
EBITDA was $182 million or up 3% on a rebased basis in the quarter as both direct operating costs increased year over year caused in part by higher activity.
Next cable wireless Panama, Q3 revenue and adjusted OIBDA of Covid, 9%, 11% on a rebased basis, respectively.
Revenue of $129 million and adjusted OIBDA up $48 million momentum is building in Panama led by Rebased revenue growth of 15% and B to B and 10% in residential fixed residential mobile posted modest growth over Q3 2020.
On residential fixed we have added 70000 RV used in the last 12 months with roughly 40% of the current quarter, which should help propel growth into the fourth quarter.
Highlighted in another slide as Liberty, Puerto Rico, we reported revenue of $359 million and adjusted OIBDA of $142 million, representing modest rebased growth in Q3, a 2% revenue and 3% and adjusted OIBDA in terms of revenue our legacy fixed operations. Once again grew double digit year over.
Yeah, well Liberty mobile declined as subscription revenue growth was offset by lower equipment be it would be in roaming revenue.
Adjusted EBITDA was impacted by higher costs, principally in the areas of robbing programming and labor on a year over year basis.
The decline in adjusted EBITDA from Q2 was due in large part to lower net roaming and greater losses from equipment sales. We also incurred integration costs of $2 million, which we assume will step up considerably in the fourth quarter.
Turning to BTR.
That's me revenue of $193 million and adjusted EBITDA of $65 million.
Rebates declined, 5% and 18% respectively sequentially our results in U S. Dollar terms, reflecting average depreciation of the Chilean peso by approximately 8%.
As compared to Q2 consistent with prior quarters, our year over year. When he based revenue decline was largely due to volume losses in ARPA decline called Bravo.
Compared to last year adjusted EBITDA is from perhaps faster than revenue due in part to much higher programming costs relating to the return of livestock Rematches one possible from a quarter would that be two hours adjusted EBITDA in Chilean pesos was marginally positive for the second quarter results.
And even with coastal weekend, including removal of assets for about 50 days of the quarter generated a revenue of $77 million of Rebased revenue growth of 11%. This top line performance was driven in large part by combination of mobile and broadband growth, reflecting the increases in the subscriber basis last year, we reported adjusted OIBDA of 20.
$4 million, reflecting rebased growth of clinical response.
Quarter to Telefonica apples contributed $41 billion of revenue and $11 million of adjusted Quaker.
Integration activity should begin to ramp in Q4.
On slide 12, we recorded pini additions of $232 million for Q3, and 599 $9 year to date, our spend equates to 20% of revenue for Q3, and 17% of revenue for the nine month period. The increase in quarterly spend was due in part to the significant expansion in our new build activity.
Which is up three fold in terms of homes passed or upgraded as compared to last year. We'll continue to have elevated capital spending in the fourth quarter, reflecting our investments in network subscriber growth and integration and are on track to deliver full European any additions of approximately 18% of revenue.
With respect to adjusted free cash flow, we delivered our fourth consecutive quarter of positive free cash flow was $56 million in Q3, bringing our total to roughly $150 million for the nine months. We are currently tracking to exceed our $200 million guidance figure for 2021.
On slide 13, we have broken down our consolidated results by revenue roughly 65% of our ported revenue Q3 is U S. Dollar U S dollar linked and OPEC Importantly, Puerto Rico, and Panama account for 40% of our total revenue and that will increase post the claro acquisition in Panama.
Additionally, post our JV in Chile overall value will still be impacted by the trajectory of the Chilean peso theoretically, but our consolidated reported was also the U S dollar oriented to over 75%.
In comparison to other publicly traded operators in the region. This U S. Dollar mix, we believe is a key positive differentiator.
Moving to our financing metrics on slide 14. During Q3, we funded the acquisition of Telefonica in Costa Rica, with local debt borrowings and cash from L. A and our 20% partner and in early October we completed a roughly $600 million eight year refinancing and C. N W. At a fully swap rate of about $4 four per se.
This results in over $14 million of annual free cash flow savings beginning in 2022.
At September 30th, including BTR, which is held as an asset for sale on our balance sheet, we had $9 $2 billion of total debt $1 $1 billion of cash at $1.2 billion of availability under our revolving credit line. We had gross leverage of five times and net leverage of 4.4 times inclusive of ETR.
Our ratios will fall slightly after adjusting for a full quarter impact of Telefonica coaster week.
Our maturity schedule in the upper right remains long dated.
Finally, an important development that we discussed in Q2 is that when we started our share buyback.
We purchased $10 million in Q2, we double that in Q3 to $29 and have definitely continued into Q4 three.
Through Q3, we have $60 million remaining under our current repurchase authorization, which expires next spring.
Turning to slide 15, as we had highlighted today, we've been very active in the quarter. We are executing on our plan to drive future value to both customers and shareholders dragging subscriber revenue and adjusted OIBDA growth year to date, expanding our network investments and making strategic Nonorganic moves, which we believe.
Our highly accretive and which strengthened our product offering for our customers. We are on track to deliver our 2021 guidance targets on new builds P. Any additions and most importantly free cash flow, which is a key metric for us and how we run our business given the share weakness we have seen over the last few months.
And our view on our free cash flow trajectory and relatively quiet near term acquisition pipeline, we have ramped up our buyback activity capitalizing on what he believes that valuation disconnect and a high capital return opportunity in Q4, we are focusing on customer acquisition Newbuild digital.
<unk> and integration activities, which should set the stage for our 2022 performance with that operator, we are ready to take questions.
Thank you and if you would like to ask a question. Please signal by pressing star one on your telephone keypad. If you are using a speakerphone. Please make sure. Your mute function is turned off to allow your signal to reach our equipment again press star one to ask a question, we'll pause for just a moment to allow everyone an opportunity to signal for questions.
<unk>.
As a reminder, that is star one to ask a question and we will take our first question from Jeffrey Boulder check with pivotal Research group. Please go ahead.
Hi, Good morning, I had a couple of questions on Puerto Rico I was hoping you could provide more color on the the wireless revenue decline is it fair to say, that's mostly COVID-19 related and then if you could give any color on when do you guys intend on rolling out converged offer to consumers.
In Puerto Rico, that'd be helpful and I had one follow up.
Good morning, Jeff.
Let me maybe address that had been in the last night you could jump in here you wanted wireless business in Puerto Rico actually doing really well, we actually added postpaid subscribers.
We did have some headwinds.
But it's not really COVID-19 related it you know bouncing around a bit on roaming somebody equipment feels you know.
<unk> moved off a bit but.
The Greek quite bullish on that.
On that front and on the converged side, we've already started our converged offerings and but we're going to prove even more so once the systems cutover due to them too.
I would say not now Jay do you want to add onto that.
Yeah sure.
Good morning, Jeffrey Yes, I mean to a cool vantage point too.
For us the fundamentals are really strong, but if you look at service revenue both sequentially and year over year, it's growing there.
Volatility a bit on the roaming is a brown discusses what is it Cooper revenue as you know as well you know the iPhone launch.
Late September and you know the peak was it was in October where people usually hold the purchase until the roof won't come in so we do see the seasonality and as you know in.
In most cases.
Negative contributors one when it comes to corporate on the roaming you know what I think was expected the seasonality.
More people aren't traveling as well, which in some cases other expense in some cases would just as everyone is well.
For the convergence are really excited about the way this is unfolding.
As Obama had mentioned we did converge on brand and on September 28, and the feedback has been really positive.
And we are not only our offer our converged on converging now, but our sales trends are converging so consumers are walking into a retail.
Tours to they are able to prove.
Purchase both fixed and mobile.
This will result, a really positive.
And again, we're just literally you know four weeks into into into this show really excited them you know three optimistic about the future from that perspective.
And then is it.
Is there any update on your your subsea assets you were thinking about selling a portion of that I think you're going to let us know in fourth quarter or is that not happening you're still thinking about it any update would be great.
Well, Jeff you can clearly see that business is a very good strong business very stable and predictable cash flow, we've been thinking about the sum of the parts of it are giving better more clear line of sight to it I expect that in our February call. We'll give you a very clear view on.
What what our plans are under an asset.
Great. Thank you very much.
Sure.
And up next we'll take a question from Michael Rollins with Citi. Please go ahead.
Thanks, and good morning, I'm curious if you could.
Discuss when you have fixed mobile convergence in the market.
What is the typical revenue or margin advantages over not having that level of convergence.
Sure.
A few drivers, but the convergence clearly the bundle give a better E. R. P. C with a constant you know the average revenue per customer secondly, improves the tune is wrong.
And and you know certainly, especially in our case, where we have a lot of prepaid customers.
FMC this convergence actually moves a lot of unpredictable prepaid customers to a postpaid customer.
Even in some cases, even kind of a hybrid Bruce b, but the goal really is to.
Get the customer to stick with this long ago.
Great value to the bundle.
Have them see or actually experienced a much better service from us.
And do you radically also better value for them.
With Covid plus emanating like but can you help us look through that to what the underlying margin trends look like particularly a cable and wireless and how much more room do you have to run in your cost reduction work there and secondly, fix tossed me continues to be surprisingly strong can talk about what you're doing with that product.
What's the impact in terms of our poo and churn with the strategy around it is thanks.
So on the [noise] cost margins skimmer wireless and my General manager there and goes on to call. This Brown I lost it there may be some thoughts on the cost reductions that she's taken on we think there's some day day's gonna be margin expansion down.
On two fronts, one on the Opex outside.
Actually also improve on the Cogs site and.
And then clearly as time goes on even under Capex as well, we expect a few more points in the combination of all the street cause segments.
And and and anger has done some really good work both at the center as well as in the islands and driving some of the cost reductions. So maybe you can go if you want to comment on that.
Yes <unk>.
Good morning, James Indeed, so.
Really look at it like the line business line.
To every single aspect also <unk> will pick site or my taste of Coke site and really looking forward to returning assessment and we really started that work in the last theatres and next your Bill continued and then also in the next <unk>.
It will continue to July 5th pieces that we can put like Battle said both of these markets and at the center and I.
Can you give me some room to improve that site.
Thanks <unk>.
And then on your second question on on fixed telephony.
It is an interesting thing I mean, clearly this product it's not you know a super gross product, but we found still away where customers you know to the bundle.
Kind of an innovative pricing proposition.
Getting our existing customers to just to add on voice to the service and you know you can imagine the gross margin and this is like close to 100 per cent and so we you know we've just taken the advantage to.
To drive more and more of it and and it's working in some areas. They may not counting on this as a growth drive for business.
Count on this.
L O b as as a driver, but when you get it you take it and and we saw an opportunity and and we put our salespeople on it and we were able to put up some good numbers.
Alright, thank you.
And once again to ask a question press star one.
And up next we'll hear from submit data with New Street Research. Please go ahead.
Hi, guys, yet thanks for the presentation a couple of questions.
Just on the.
Can I. Please you talked about the the sub space kind of stabilizing a little bit, but the broadband mm mm. It's.
A particularly weak cutting so we've seen accelerating broadband losses through the shift so.
I I just wanted to know your thoughts about the momentum in the business and again as a kind of joined question. How do you see the the deal you'll doing in Chile.
Helping on the thick side in particular and I guess it also is there anything you can do before that T O classes healthy and thickness.
So that's one question. Please I'll, maybe I'll wait to wait for the answer and then just go with another one.
Sure and I'll ask vivek to jump in here in a bit as well.
The broadband business day, it's been all over the map our gross adds on broadband are really good there's some leakage clearly and that's why the net that's been off.
But the three thinks that redoing, one re improving our retention on broadband they'd be getting a lot more creative on that as well do as you can imagine.
Repricing a product and you can see that you know EBITDA and and that is also slowed you know a lot of the churn part of of broadband.
Instead, we are gonna read back to some of our sales team not.
Not some a lot of our sales Steve to now focus specifically on broadband so.
Uhm, so you'll see some some you know number standing on there, but I'll tell you we are adding a gross adds coming and still strong on broadband is just the chin level. So we're trying to address the next stage the chair and part of the but that broadband proposition Vivek would you would you mind, adding a bit more to that.
Yeah. Thanks, Thanks palette. Thanks, so much for the question I think.
His balance that really focusing on the <unk> side of the equation, which continues to be challenged with the competitive intensity here as a competitor to continue to expand that footprint.
Our 10 improvement initiatives, you've seen reductions in technical services call struck rolls et cetera. So we got those should have a lagging effect said that we should see the upside of shown in a while.
But you've been having some record months on both sides I think you've given the seasonality seemed like probably the best set of gross adds you have done in the last few years on the broadband side of course ultra fuelled by some of the new Bill to give added into the market itself.
I would say the competitive intensity continues to be difficult in the marketplace, which is kind of reflected in the numbers but.
The opportunity for.
Broadband subscribers is still there.
Thanks, Okay, that's great.
Thank you very much and can.
Can I follow up please just with [noise] just a quick question for <unk> on Cashflow. The I think the you know the integration costs are coming in a little bit lower this year could you just give us a quick update please all as we move into 2022, what will the Dell to be between Uhm integration costs.
This year or next year and also then synergies so what what would be the the movement to free cash flow from the from the combination of of all of those things. Please.
Yeah without I mean, we're obviously still working through our plans for next year and the and the budget process and.
In terms of integration as it relates to Puerto Rico, what we have communicated as we expect.
Q for integration to be around 10 $10 million. So that's a that's a little bit of a step up from where we've been year to date, so that would bring the total to roughly $15 million on the cost side. This year I think you know as as of today, we would expect it to be higher integration costs.
Next year in twenty-two a lot of the hard work that <unk> and the TNI team are doing around the mobile corps and things of that nature happen.
During the during the year next year, so I would expect to step up there I think capex, we continue to spend.
Capex on integration and that will stay pretty constant I think an integration land next year as well, we'll have more detail on some of the synergies and views as we kind of finished the the outlook for Puerto Rico.
When we report in February.
Okay, great. Thanks.
And we will take a follow up question from Jeffrey Volta check with pivotal Research group. Please go ahead.
Thanks for letting me ask a follow up I had a couple on chili and the speech, you're Clara deal, which given out competitive it's getting looks particularly smart transaction I guess what are the regulatory milestones we should be looking for the deals moving towards getting approved I guess, that's the first question.
Your lighting up a lot of two way enabled homes and chili right. Now is that something you can modify so you aren't sort of overbuilding, you're at work or that kind of beach, it's already kind of built in and then third are there any opportunities posts deal to potentially like monetize towers or anything like that that we're not aware of it. Thanks.
I'll answer.
It didn't do entry and John Winter General councils, it's working really hard on the regulatory front will will take on one.
On the on the new Bill we will continue to aggressively.
Build out.
Fiber to the home and clearly just you know we can't coordinate with our partner yet so when we're not coordinating with them and.
Overbuilding demo them overbuilding as we're doing our own thing.
And until the deal closes, but we really bullish on the new bills and and I think Chris May have mentioned it I don't know if you did that.
That we are in a lockbox situation right now after designing and so you know all spending is really JV spending at this point and so we you know we are just charging ahead.
You had a second question.
What was the third question again I forgot.
Yeah.
The tower, yeah, the current amount of time.
You know not much or that they won't be much now as I mean, yeah, you can't imagine tele sites and what they've done with that we were not expecting any.
Much activating now we do on some knowledge as well, but there's nothing to write home about.
John you want to talk about the regulatory yeah sure. Thanks bound so we.
We we filed with the regulator.
At the end of last week, the formal application process, we had already been working with with our partner with the regulator on that so so that got file formulation kicks off the phase one process, which will take about 45 to 60 days, maybe 90 days to get through and answer all their questions.
We do expect that it will go onto a phase two given kind of the competitive environment and and everything in Chile.
But we feel good about the the approval process, we feel good about the the advantages will bring the chili and and a consumer. So eventually we get closer to stuff a longer process and chili and we're still expecting closing in the second half of next year.
Thanks, Yeah, alright, thank you very much.
Thanks, Jeff.
And there are no further questions in queue I'll turn the call back over to ball in there for additional remarks.
Thank you operator, and I do want to thank all of you on the call and just to reiterate.
We feel good about the quarter strong operation no growth organic growth in or do you use.
Good numbers on postpaid and fixed.
I would also say that.
A new bills, we are really excited about the new bills and we continue to do that we really leaning into our thesis the cash flow numbers that Chris talk about.
Clearly.
Meeting and exceeding guidance on the on that front.
And as you pointed out in this world Geoff on the on the call some really smart emanated decision.
And transactions that we executed on this last quarter. So for all those reasons and more we remain really bullish about this business in the future for LLE. Thank you. So much for all your support and have a great day.
And this concludes today's call. We thank you again for your participation and you may now disconnect.
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